Maximizing Profits: Wholesaling with Retail-Value Sellers

What is going on everyone? Today is the Painless Wholesaling Hour, the Investor Thrive Live, whatever you want to call it. Today what we're going to be going over is how to sell a wholesale deal, assign a deal that literally you shouldn't even be able to do. Right now I'm doing a deal with one of my students, Henry, where he's brought me a deal It looked good. The seller was motivated, but she wanted retail. And I was like, I just don't think we can get it done. We have an assignment where you got people that we're signing into. It's going to either be a $6,000 to $10,000 deal. And this deal makes absolutely no sense for a wholesale deal. If you were just to give it to someone just because there's not a ton of equity in it, we're basically selling it for retail. But because we have the right terms, because we know how to structure these things, we're able to get it done. Now, look, I'm currently in my Airbnb. I'm on vacation right now. But that is the beautiful thing about wholesaling and doing real estate investing is you can do it anywhere. I'm on my laptop, I'm with my family on spring break, and I'm in the Airbnb room. They're out there having fun eating. And I said, look, I got a batch call. I'm committed and I love batch and I love doing my job, but I'm on vacation. But I said, hey, I got to take an hour to make, you know, $6,000 to $10,000. I didn't say that I got to make it take an hour to make that, but I basically got to get this done, but I can do it from anywhere. I can do it from my Airbnb. I'm in St. George, Utah right now. I just went to Zion National Park with my family yesterday. So I'm going to take a little bit of time to show you guys exactly what I have to do to get this deal done. It's an amazing thing. All I have to do with this job is have a laptop and, you know, batch leads and some software, and you can get it done. And a cell phone. That's it. And an amazing job where you can just literally go do deals anywhere in the United States. On vacation. You can do it virtually anywhere. By the way, this deal is in Florida. I've never been to Myers, Florida, never even stepped in that area. I don't know what it looks like. I don't know anything about it, but I'm doing this deal virtually in Florida and the seller is in California. Do I need to see what the house looks like? Do I need to know that much about it? Do I like need to physically be there? Not really. I just need a couple certain steps, a couple certain things to be able to get it done.. And that's what I'm going to show you today. Henry is one of my students. I'm going to kind of explain the process that got us to this point for everyone here and what you need to do and what you need to learn in order to get a seller finance deal done. Now look, I'm not going to sit here and say I'm the guru, that I know everything about seller finance. I don't. And that's the cool thing about having the right people in your corner. I have a title company that I can call and ask questions to. Christina Moser at GT Title is awesome. I basically call her and say, hey Christina, what do I need to get done? What kind of paperwork? And that's the thing, like, so don't feel you have to be the expert to get deals done. You can leverage other people's expertise to find out what you need to get done. So Henry, I'm bringing Henry on. We'll say what's up to Henry, one of my favorite students. Henry, what's up, brother?

What's up, Nathan?

Tell me what your thoughts have been on this deal. Has it been kind of crazy for you? Like having to navigate all this?

Yeah, it's a long conversation and then kind of complicated on this deal.

Yeah, it's a little bit complicated in the beginning, right?

Mm-hmm.

Yep. So basically, Henry, what did you do on this deal? You brought me someone that wanted to sell, right? It kind of explain how this happened.

So I, uh, meet the seller and then they are motivated to sell on this property. So I bring the deal to Nathan Payne and then Nathan Payne negotiate with them and then lock this property under contract. And then I help Nathan Payne find a buyer. And today we currently have 2 buyers interested in this deal.

That's right, Henry. So Henry, tell me, this deal didn't really make sense for a wholesale, like just to make a lowball cash offer deal, right? So this is what happened, everybody. This seller had the house listed on the MLS and she wasn't able to sell it, but she's motivated. She wants to sell. So I talked to her and I said, hey, look, if I were to buy this thing all cash, I would be around like $210,000 or $200,000 of what you owe. That's kind of what she owes, right? And she's like, look, no, I want $300,000. And that's retail. That might even be above retail. And I said, look, the only way I can get you that price is if you give me the terms, right? If I'm able to take over your payment, if I'm able to put no money down and I can pay you out in the future. That's the only way we can do it. And Henry, do you remember what she said? She said, yeah. She's like, okay, yeah, I'll take terms. So what we did in this situation is we said, okay, I can give you retail, nothing down. And the reason why I was able to do this, Henry, is because Airbnb in that area, it's about $3,000 a month, right, that you can make plus around there. Or if it's short-term rental, it's like $2,500. And her mortgage payment at the time that we knew was like about $1,400 a month. And, you know, PITI, principal, taxes, insurance, interest, it was about $1,700. So you could still cash flow pretty good. So I was like, okay, someone would be able to take on this property, cash flow, and then in 2 years, they're hoping when that balloon payment is due that it's worth more than $300,000, right? So they're cash flowing, they get an investment property with pretty much no money into it. And, you know, there's investors interested and there's also people that would be willing to live there that have bad credit. That would be willing to do it as well. So that was kind of our goal. So we got it signed. 2 years is very short on a balloon payment. Usually you want 5, but I said, okay, let's try it. So 2 years. So we looked around. Henry has a buyer. He's an investor out of Canada that is interested, and he wants to buy some more properties in the United States, and he's willing to do at the moment 10 down and, you know, make those payments and then balloon it out in 2 years. I have an investor from Salt Lake City that I'm tight with that's willing to do $5,000 to $6,000 depending on, you know, we structure it. And that's kind of where we're at point. Now look, I'm totally willing to make $6,000 to $10,000 on something that was not a deal at all, right, Henry? This is not a wholesale deal. Traditionally, you couldn't get it done, right? The only way this makes sense is if, you know, you're able to do it creatively. So I just got off the phone with my title company in Utah, my title lady. I said, hey, can you help me out? This is a Florida deal, but can you help me draft out the paperwork? And she's like, of course I can do that. So she told me exactly what we need. So I'm going to tell you guys what you need in that paperwork. And I know this is a batch call, but this is kind of what happens is you use this information from batch, you market to this specific area, you get a seller, and you need to be able to know how to navigate these offers that you make. You make a lowball, you make a low cash offer. If it isn't accepted, then you go to the next option. We say, look, I know you want retail. The only way I can get you retail is if we list this property or if we buy on terms. So I never give up. I don't just say, okay, let me follow up with you. In check, I say, okay, there's some other options we can explore. So that's what we're doing with this. So don't be throwing away your leads of people that want to sell, but they want retail because you can get it done like we're doing on this one. Now, what's the next step? I just talked to Noelle Henry, the seller, and I'm saying, okay, hey, we're good to go. We just need to discuss a couple of things with you. So this is kind of what happened when we first talked to the seller. We believe she told us that the PITI of her property of the payment was about $1,300, right? Including principal, interest, taxes, and insurance. All right. So we have to at least cover that or pay higher than that to get this deal done. So I said, okay, we can do 4% interest at $300,000 because that's what you want. And our payment would be like $1,432. So it would have covered all that. So I just looked at her mortgage payments, actually $1,722 PITI. So what I believed we were going to have to pay on that is actually We're going to have to pay a little bit higher. Again, where we're at right now is it's time to assign this to our buyer. I have a buyer that's willing to pay $5,000 to $6,000 and he's ready to go. He's like, yeah, just sign me the paperwork. Now, Noel, the seller we're working with, we just have to maybe sign another addendum because today is the end of our— we're supposed to close. We're going to sign another addendum. I'm going to put in a little bit more verbiage in the paperwork so we can get it done. But other than that, we're pretty much done at this point. We just have to send all this to the title. And get it wrapped up. And bam, that's it, brother. I know it's a lot. So anyway, there was a comment that came through I want to answer from Amphitryze MZ. She says, how do I pull subject-to lists from batch leads? So the thing is with subject-to is there are certain lists that you can pull that are lower equity because usually subject-to is when people don't have a lot of equity in their property. So you can pull lists of people who just purchased properties, you know, that might have different indicators like absentee owner, maybe like you know, tax delinquent, evictions. You can do other things, but the way I do it is I just offer to everyone that I talk to. If I make them a low offer on any list I pull— absentee owner, high equity, any of the lists in Batch that have motivated sellers— you want to be able to pitch creative terms to anybody that doesn't accept your initial low offer. So I don't think there's a specific list you need, personally for me, that you need to target for subject to or seller finance. I just think you need to be able to know how to pitch it. All right, and for anybody else that's going to watch this in the future, guys, This is it. This is a full-blown, like, navigation of, like, showing you exactly how to do this. And sometimes there's areas and places you go that you're new and you got to figure it out. And that's about taking action. That's how you get started. You take action and you learn as you go. Hey, Henry, thanks, man. I appreciate that. Well, let's get paid. Let's get paid on this one. Let's get it done. I'll talk to you later. I'll keep you in the loop. And for everybody that's been watching the Painless Wholesaling Hour, this is it. This is how you get it done. There's nothing to it but just to do it. Thanks for watching.